Hamilton Lane is spending $74 million to acquire a majority interest in a four-asset mixed-use multifamily portfolio in Lower Manhattan. The deal was formed in a partnership with Dalan Real Estate, which will continue to operate the properties and maintain 15 percent of the equity. The transaction will give Hamilton an 85 percent stake.
The portfolio covers 126 multifamily units along with ground-floor retail space that spans more than 11,000 square feet. They are spread across the SoHo and West Village neighborhoods.
Elizabeth Bell, co-head of real estate at Hamilton Lane, said in a statement that the company believes that now is an ideal time to strike, with national real estate values down roughly 20 percent over the last couple of years. And what better market to find an opportunity than in the bright lights of New York?
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"We had high conviction around the acquisition of these assets, which have resilient tenant demand in a desirable location," she noted.
"Given the scale of the Hamilton Lane platform and our reputation as a supportive capital partner, we have generated significant deal flow and have the flexibility to invest in real estate through various channels, including primary funds, co-investments, secondaries and joint ventures. We remain eager to continue partnering with experts like Dalan in sectors and locations where we have strong conviction."
According to Dalan, it has operated the portfolio for 10 years, and it sees "great demand" for residents to still want to live in the SoHo and the West Village areas.
The deal comes as rents for February hit a record high in Manhattan of $4,500, which is also up 6.4 percent year-over-year, according to a report from Douglas Elliman. The category that saw the biggest annual increase was loft apartments, which shot up by 25 percent to $8,750.
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